Rocky Mount is a city in Edgecombe and Nash County in North Carolina. It has a population of just over 54,000 people, and it’s the 19th biggest city in North Carolina. Raleigh is just 45 miles east of Raleigh, which is the state capital of North Carolina. Rocky Mount is also a great place to invest in real estate because of its affordability compared to the national average.
According to Niche, Rocky Mount is one of the best places to retire in America. It’s a place with great diversity and a sparse suburban feel. It is a place where most residents own their homes, and where there are significant parks and green spaces. It’s home to many families and young professionals. Rocky Mount has a median home value of $113,100 and a median rent of $793.
Right now, Rocky Mount is a seller’s market. It is a place where demand is outpacing supply and where real estate investors are getting into bidding wars over the best real estate in town. Rocky Mount is a town where homes are selling fast and for higher than listing price.
Hard money loans might be the best way to invest in real estate in Rocky Mount. Hard money loans are also known as last resort loans, but their biggest advantage in a seller’s market like Rocky Mount is their very fast speed of approval. Hard money loans can be approved in a couple of days, whereas traditional mortgage loans can take a month or more to be approved. This is a terrific benefit for investors because, in a competitive seller’s market like Rocky Mount, time is often money. Real estate investors benefit from this very fast speed of financing.
Hard money loans can be approved so quickly because they’re based on the property, not the credit score of the borrower. Hard money loans use the property as both the asset and the collateral, as a matter of fact. They might require a minimum credit score of 600 to 620, and a good credit score might help investors get better interest rates. But hard money loans have a different default process to traditional mortgage loans. If a borrower defaults on a mortgage, the bank forecloses on the property. But if a borrower defaults on a hard money loan, the lender takes on the property in a much more quick process. This is an inherent risk for the hard money lender, and each lender prepares themselves for this possibility before approving borrowers for loans.
For these reasons, hard money loans also have plenty of disadvantages and risks reflected in their terms and rates. They come with higher interest rates, shorter repayment periods, and lower LTV ratios compared to traditional mortgage loans. Hard money loans have interest rates anywhere between 8–15% on average, which is significantly higher than the just lover 4% interest rates of traditional mortgage loans. They also have average repayment periods of a year, which are significantly shorter than the repayment periods of traditional mortgage loans (around 30 years on average). Lastly, hard money loans have lower LTV ratios of around 65–75%, which are much lower than the average LTV ratios of mortgages of 80%.
Because these rates and terms are so unforgiving, it’s important to only trust the best hard money lenders. That’s where we have you covered at Hard Money Lenders IO. We have compiled a list of the best hard money lenders in Rocky Mount.